gender differential paper IJCRB

ijcrb.webs.com
JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
capacities, as well as launch them on their national and foreign markets. There is still a great
threat of technology leakage and plagiarism in China.
Registration Procedure Model for Establishing an WFOE in the PRC
On the basis of the carried out research, analysis of relevant literature and sources about
establishing a wholly foreign owned enterprise in the PRC, a registration procedure model for
establishing a wholly foreign owned enterprise – WFOE was drawn up, which could serve as a
basic framework during registration procedure of a WFOE in the PRC. The model was adopted
from Dezan Shira & Associates (2006, 43) and modified with results of this research which
contains all essential elements that appear during the registration of WFOE and all particularities
that foreign investors should pay attention to prior to and when registering a company. The
elements in the model were obtained from theoretical findings and conclusions made on the basis
of the research (interview) that was carried out in China.
The set up model contains all elements that offer investors a quick and up-to-date insight into the
registration procedure of a wholly foreign owned enterprise, the course of registration and
foreseen costs related to company registration. The model also enables us to see the time course
of the registration and its duration.
The registration procedure model of a wholly foreign owned enterprise (WFOE) is demonstrated
in Figure 1, and has been divided into five main steps that lead to an official establishment of a
WFOE; however, official establishment does not necessarily mean that the company may begin
its operations. In order to complete the registration, several other procedures have to be carried
out, some of which overlap or can be carried out simultaneously, while others cannot be carried
out prior to the step ahead.
The model reveals that six to eight weeks are required for registration or obtaining a business
license, however, a company cannot start operating immediately, as other registration procedures
before other state authorities, for instance, tax, customs and inspection authorities have to be
carried out. In order to obtain all licenses and to open an RMB and foreign currency account, we
need 16 to 20 weeks. Nevertheless, any procedure can get prolonged, since much depends on
correct documentation submitted to individual state authority. Length of the procedure also
depends on a province and local legislation.
Registration of a company in the PRC must be approached in the same manner as project work.
The project of establishing a company in the PRC begins with an idea and continues with team
approach that leads to company registration. As various researchers (Devetak, 2003; Potočan et.
al., 2008; Meško et. al., 2009; Fatur and Likar, 2009) pointed out, an idea is only a step on the
way towards innovation, which, in our case, is a registration of a company in the PRC.
The model was set up on the basis of findings from literature, sources and research work in the
PRC, and can be applied to the most common type of production companies that register a
WFOE in the PRC.
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